Amazon Instant Video grows internet traffic share in the U.S.

Thursday, November 20th, 2014 
Sandvine logo

Sandvine Report: Netflix Dominates (Still), Amazon Instant Video Growing

  • Facebook video autoplay causing major increase in average usage on fixed and mobile networks

WATERLOO, ON — Sandvine (TSX:SVC), a leading provider of intelligent broadband network solutions for fixed and mobile operators, today released its latest bi-annual Internet traffic trends report, entitled “Global Internet Phenomena Report 2H 2014”. The report is based on data from a selection of Sandvine’s 250-plus communications service provider (CSP) customers spanning North America, Europe, Middle East and Africa, Caribbean and Latin America and Asia-Pacific.

“With both Netflix and Amazon Instant Video gaining bandwidth share in North America during 2014, it will be fascinating to see how a standalone HBOGO streaming option will impact networks when it launches in 2015,” said Dave Caputo, President and CEO, Sandvine. “The dynamic streaming video market underscores how important it is that operators around the globe have the business intelligence and big data solutions in place to understand the ever-changing behavior of their subscribers.”

Sandvine’s Global Internet Phenomena Report 2H 2014 contains findings from fixed and mobile networks around the world, including:

Video Streaming Services

  • Netflix continues to dominate North American networks, accounting for 34.9% of downstream traffic in the peak evening hours
  • Amazon Instant Video has established itself as the second largest paid streaming video service in North America. While still only accounting for 2.6% of downstream traffic, its share has more than doubled in the past 18 months
  • In advance of plans to start offering a standalone streaming subscriptions in the US, HBOGO accounts for just 1% of downstream traffic in the region
  • On a fixed network in Australasia, where Netflix isn’t even available yet, approximately 2.5% of subscribers are accessing the service and it comprises as much as 4% of peak downstream traffic

Other Applications

  • Facebook’s introduction of video autoplay saw average subscriber usage increase by as much as 60% on mobile networks and over 200% on fixed networks in the past year
  • As a percentage of traffic, Filesharing traffic continues to decline globally in almost all regions except Asia-Pacific, where it still accounts for more than 33% of total traffic
  • In Latin America, contrary to our own predictions, World Cup streaming on some mobile networks accounted for just 10% of traffic. Apparently, consumers still prefer to view major sporting events on television, with mobile devices as a backup
  • Apple’s iOS 8 launch in September saw the software update account for over 12% of peak traffic on one Middle Eastern fixed access network

Global Internet Phenomena Report Methodology

Sandvine’s Global Internet Phenomena Reports are based on a representative cross-section of Sandvine’s data from a selection of Sandvine’s 250-plus customers spanning North America, Europe, Middle East and Africa, Caribbean and Latin America and Asia-Pacific. Data is gathered over a one-month period and is completely subscriber-anonymous. No identifiable information of any kind, including IP addresses are collected during the study. Sandvine’s network equipment analyzes data from an application utilization level and is not content aware.